Recent actions in American politics have directly stirred the global financial markets. After news broke that the Federal Reserve Chair was served a criminal subpoena, the market immediately responded—a wave of "sell American" sentiment quickly spread from Asia to the rest of the world.

The numbers speak for themselves. In early Asian trading, the Bloomberg US Dollar Index fell by 0.2%, a seemingly small fluctuation, but behind it was a collective weakening of the US dollar against G10 currencies. S&P 500 futures declined by 0.6%, and Nasdaq 100 futures fell even deeper, reaching 0.9%. US Treasury futures were not spared, also coming under pressure. This is not an isolated fluctuation of a single asset class, but a signal of a broad retreat of US assets.

Where is the problem? Essentially, it is concerns over the independence of the Federal Reserve. Monetary policy was originally the central bank’s exclusive domain, but now that line seems somewhat blurred. Disagreements between the government and the central bank on interest rate cuts have not only opened up decision-making gaps but also caused investors to start questioning: should I reduce my allocation to US assets?

The logic behind this wave of trading is quite clear—if interest rate policies are no longer independent, the credibility of the US dollar as a reserve currency will be weakened. And once market confidence in US assets starts to crack, the subsequent chain reactions could be significant, but it’s hard to say exactly how large they will be.